Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or 100% of your average daily income from self-employment for a certain number of days where you couldn’t work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or two-thirds of your average daily self-employment income.
This applies for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse what is the setc tax credit are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To determine your SETC Tax Credit, you would use Home page IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.